Economy of Japan

The economy of Japan is one of the most vibrant and booming economy in the world. High amount of western influence together with the governmental policy of laissez-faire was mostly responsible for the significant growth in economy of Japan in the post second world war period. However it should be mentioned here that the economic boom in Japan lasted only for half a century and Japan began experiencing a significant downfall since the last decade of the 20 th century. There are certain factors which had contributed to the exceptional growth of Japanese economy like, almost 100% literacy rate, work ethics, insurmountable technology and cheap fuel mainly oil.

Some of the sectors of Japanese economy which enjoyed the highest percentage of growth are automobile industry, innovative technological sector, electrical products and domestic items. Within 1950 to 1970 the rise of GDP was from 21% to 56% and in the years after 1985 the economy witnessed a steady downfall. The collapse was termed by media and the economists as the bursting of the ‘bubble economy'. However since 1995 some sort of recovery is coming in to the way of Japanese economy though it is still unable to achieve its earlier standards.